Donations to the Ukrainian government and associated charitable organizations are skyrocketing as the fighting has intensified against invading Russian forces. Cryptocurrencies have figured conspicuously in the effort, billed as a new and welcome resource for the country in a time of crisis. But Ukraine’s journey into the crypto world has had its bumps, serving as much as a cautionary tale as an inspiration.
The Ukrainian government has established multiple digital wallets to receive donations in a variety of cryptocurrencies from Bitcoin to Dogecoin, while other nongovernmental bodies also have their own wallets to procure donations for the country’s armed forces. The process of tracking just how much has been donated is tough, though, despite crypto’s professed transparent nature. Bloomberg verified more than $28.5 million in donations to Ukraine’s government as of Thursday morning, but other sources such as blockchain analytics firm Elliptic puts the total closer to $43 million. The amount is but a drop in the ocean, however, with Ukraine’s 2021 defense budget estimated at $4 billion.
To those on the ground, assistance is vital no matter what form it comes in. For some Ukrainians abroad, crypto is where they feel they can contribute the most to aid the fight in their homeland. And Ukraine’s success in raising money and commanding the attention of crypto’s masses has been nothing to sniff at. But the process hasn’t been without snarls: Ministers and donors alike have had to navigate a range of pitfalls including a failed project, a lack of spending power and rampant scams.